Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620
(c) SHIPMENTS FROM CALIFORNIA TO POINTS OUTSIDE STATE
(2) Delivery to Purchaser in State
325.0690 Time of Sale. A horse was located in California on the date that a purchase and sale agreement was executed. Pursuant to the agreement title was to pass upon the purchaser receiving a warranty bill of sale, the JockeyClub registration certificate and confirmation that the interest being sold was free of liens. However, the right to possession and control of the horse passed to the buyer upon execution of the agreements.
The horse was removed from California six days after the agreement was signed and approximately two weeks later the two documents were delivered.
The sale of the horse occurred in California because:
Possession and control passed in California as evidenced by the fact that the day following the agreement the horse raced under the purchaser's personal colors rather than the seller's personal colors.
Title, ownership and possession of the horse passed in California when the seller completed its performance with respect to physical delivery of the horse. The reservation of any title was a security interest. 7/23/92.